You’ve probably seen the signs and online ads: "First Month Free!" or "Reduced Deposit!" It makes you wonder if you should be doing the same thing to get your place filled faster.
The truth is, it can be either. It all comes down to strategy. As property management pros right here in Fort Worth, we're here to cut through the noise and help you figure out what makes sense for you and your property.
Key Takeaways
- With a 7.0% national vacancy rate, a smart incentive is how you beat the competition.
- A one-time deal is a short-term cost, but lowering the rent permanently cuts your income.
- Since 58% of renters have a pet, allowing them is one of the easiest ways to get more applicants.
What's Happening in the Fort Worth Rental Market Right Now
To know if you need to offer a deal, you first need to know what you’re up against. The national rental vacancy rate is sitting around 7.0% for the second quarter of 2025, according to the U.S. Census Bureau's Housing Vacancies & Homeownership. That means millions of rentals are sitting empty. And that’s just the average; in many major cities, that number is significantly higher. When there's that much competition, you can't just list your property and wait.
This has also caused rent growth to slow down nationwide. In this kind of market, where renters can afford to be picky, a good incentive can be the very thing that makes them choose your place.
The Good and The Bad of Offering Incentives
Before you put up a "Free Rent!" sign in the yard, you need to weigh the pros and cons. Incentives can be a powerful tool, but they aren't a magic bullet. A smart landlord knows both sides.
A. Why Incentives Can Be Your Best Friend
You Get Paid Sooner.
This is the biggest and most obvious win. Let's say your place rents for $1,600 a month. One month of vacancy costs you exactly $1,600. If offering a $500 credit gets a good tenant to sign a lease two weeks earlier, you just saved yourself $800. It's that simple. Incentives get cash flowing back into your pocket faster.
You Attract Better Tenants.
It's a myth that only desperate tenants look for deals. Everyone likes a good deal, including tenants with perfect credit and glowing references. By offering an incentive, you attract a wider range of applicants. More applicants mean more choices, which gives you the power to pick the absolute best person for your property.
You Stand Out from the Crowd.
All are listed for about the same price. Two are standard listings, while yours offers to waive the pet fee. That small difference is often the tie-breaker that gets you the application. It shows you're motivated and makes your property more memorable.
You Keep Your Rent Price High.
It's much smarter to offer a one-time discount than to lower your monthly rent. If you drop your rent by $50 to get a tenant, you lose $600 over the course of a year. A one-time $300 move-in credit costs you less and, more importantly, keeps your official rent price higher. This helps when it comes time for renewals and protects your property's overall value.
B. What to Watch Out For
It Costs You Money.
Incentives cost you cash upfront. Will the cost of the deal be less than the cost of your property sitting empty for another few weeks or a month? You have to run the numbers to make sure you're solving a problem, not just creating a new expense.
You Might Attract "Deal Jumpers."
Some people are always chasing the next best offer. An incentive might attract a tenant who has no intention of staying past the first year. This leads to higher turnover, which means you're back to paying for marketing and cleaning all over again.
You Could Set a Bad Precedent.
They might be surprised or push back when you propose a standard rent increase at renewal time. You need to be very clear from the start that the incentive is a one-time, move-in special only.
Incentives That Actually Work in Fort Worth
So you've weighed the options and decided to offer something. The best incentives give the tenant real value without costing you a fortune.
- The Money Savers: Offering the first month of rent free is a big one that gets a lot of attention. Reducing the security deposit is another great option, as it lowers the amount of cash a tenant needs to come up with all at once. Waiving the application fees can also be a nice gesture that makes a good first impression.
- Non-Cash Perks: Around 58% of renters have a pet. By simply saying yes to pets, you open your property to a huge number of responsible tenants. Offering a fresh coat of paint, installing a new ceiling fan, or updating kitchen cabinet handles can also make your property feel fresh and more valuable. You can also include a service, like monthly lawn care or a quarterly pest control treatment.
Market Smarter and Fill Vacancies Quicker in Fort Worth with PMI Premier!
Deals for renters can work, but you have to be smart about it. With so many rentals out there, you can't just put up a "free rent" sign on the lawn and hope for the best. Figuring it all out yourself is a headache and an easy way to lose money.
At PMI Premier, we just handle it. We make sure you get paid and your property stays in good shape. Here's how:
- We market your property to find great tenants fast.
- We do comprehensive tenant screening to find renters who pay on time and stay.
- We do the rent collection for you.
- If something needs repair, we get it fixed right away.
- We display your business contact numbers online so potential tenants can easily reach you.
It’s time to have an investment that's more profitable and has fewer problems. Give us a call and ask about our Residential Guarantees. We’ll show you how we take the risk completely off your plate.
FAQs
Do I have to pay taxes on a tenant incentive?
No. You don't pay taxes on money you never got. If rent is $2,000 and you give a month free, you simply made $22,000 that year, not $24,000. That's the number you report. Think of it as a cost of doing business, like fixing a pipe or paying for an ad. It just means you have less profit to be taxed on. If you have more questions regarding taxes, we advise that you consult an accountant.
Should I offer a free month or just lower the rent?
Offer the free month. When you lower the rent, it stays low. That becomes the new rent, and it drags down your property's value. It’s a permanent pay cut. However, a one-time deal is different. It’s a short-term cost to solve a short-term problem, which is an empty unit. You get a good tenant in the door, and then you’re back to collecting the full rent. Don't sacrifice your long-term income for a quick fix.
How do I advertise a move-in special?
Put it right in the headline. Make it the first thing people see, since nobody reads the full description on every ad they see and usually just scrolls and scans. Your headline is your best shot to grab potential tenants’ attention. A title like ‘Nice 2-Bedroom with a Free Month’ will stop them from scrolling, unlike if you hide the deal at the bottom of the description.
